Rents: an era has ended that caused one of the biggest crises in the real estate market

The evolution of Argentine rent law and the housing market between 2020 and the present reflects a significant shift from previous contractual predictability to market fluidity, complicated by high inflation. The original rent law established three-year contracts with annual increases based on the Rental Contract Index (ICL), intended to provide tenant stability. This structure ended in October 2023 when it was modified to use semi-annual adjustments via the Casa Propia index, and subsequently repealed by DNU 70/2023. While tenants under the old law reached contract expiration based on prior agreements, those under the reform are set to finish their terms between October and December 2026. The repeal allowed previous contracts to expire, leading to a current market characterized by increased property availability and revised pricing that reflects recent inflation rather than the initial rental values established under the old system.
The experience of tenants involved in these changes highlights a central conflict: the effect of contractual structure versus economic reality. While some economists view the repeal and subsequent market dynamics as an improvement by addressing entry barriers, others note that the mechanism of annual increases under high inflation led to unpredictable rent escalations for households already under financial strain. Furthermore, the recovery in supply, while visible on portals, does not automatically translate into better rental conditions for tenants, as initial prices were inflated to account for future income loss; current listing prices reflect more frequent adjustments, making direct comparison complex.

* On October 17, contracts under the original rent law ended.
* Martina signed a contract in October 2023 with terms set for annual price updates and renegotiation in October 2026.
* Martina's initial monthly payment was $280,000; her last installment reached $1,139,971 over three years under the old structure.
* Martina experienced two updates: one of 209% and a second of 31.76%.
* Current average price for a two-room apartment in Chacarita is $939,222.
* Post-reform contracts with semi-annual adjustments will conclude between October and December 2026.
* Fewer than 20,000 active contracts are under the latest regime, equivalent to 3.5% of current contracts.
* The reform modified three-year contracts but maintained them, adjusting increases to be semi-annual via the Casa Propia index.
* DNU 70/2023 repealed the rent law and opened a contractual freedom scheme.
* Supply increased by 62% in January 2024 compared to the previous month, reaching 195.4% in the year.
* By September 2026, advertised property volume was 3.6 times more than the minimum in February 2023.
* Salaries increased by 20.54% in the first eight months of 2026, while inflation reached 21.35%.
* A Tenant Survey showed 52% allocated over half their income to rent and 72% used financing for housing payments among surveyed individuals.